Cary Brown, Chairman and Chief Executive Officer of the general partner of Legacy Reserves LP, said, "The East Binger Unit is an excellent fit with our existing asset portfolio and the experience and skill set of our management team. The East Binger acquisition scales up our position in Oklahoma where members of our management team have previously operated. These assets are also consistent with our target acquisition profile of long-lived, stable producing properties with low-risk exploitation opportunities.''
--Estimated proved reserves of 4.1 MMBoe --Miscible nitrogen injection project --Reserve life index of approximately 15.7 years --Current net production of approximately 734 Boe per day --Over 50 producing wells and 30 gas injection wells --13,000 gross acres within the unit boundary --Operated through joint venture company to be 50% owned by Legacy
Legacy expects the acquisition to be immediately accretive to distributable cash flow per unit. Management will evaluate the impact of the acquisition on current distribution levels as it integrates the assets. All changes in distributions are subject to approval by the Board of Directors of the general partner of Legacy Reserves LP.
Concurrently with the closing of the acquisition, Legacy will enter into a registration rights agreement with Nielson & Associates, Inc. granting Nielson & Associates, Inc. and their permitted transferees certain rights to have the units to be acquired at the close of this acquisition included in registration statements that may be filed in the future or at their request.
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, that focuses on the acquisition and exploitation of oil and natural gas properties primarily located in the Permian Basin of West Texas and southeast New Mexico.
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